After success in tea and coffee for vending machines, Nestle India Ltd is planning to introduce vending machines for its chocolate brands.
Nestle India is studying the feasibility of setting up vending machines for chocolates. If it sees a viable opportunity, it will go ahead with the plan.
According to industry sources, the move to place the vending machines for chocolates at select locations has been on the agenda for some months now. The chocolate brands in Nestles portfolio include KitKat, Munch, Milky Bar, Classic and Bar One which has recently been relaunched.
While automated vending machines for chocolates is a popular concept in several Western countries, in the Indian context, such machines have been a largely untapped segment. Only Cadbury India has placed vending machines in a handful areas in Mumbai such as the airport and premium office complexes.
Vending machines may help in generating trials and notching up brand presence, especially in high-income residential areas. However, such machines may not actually generate volumes. But on the other hand, the marketers of chocolate brands may not necessarily be looking for volumes from vending machines for chocolates, but for brand recall instead, FMCG analysts said.
Earlier this year, Nestle had been selected to set up automated vending machines in several locations under the Eastern Railways. The FMCG major was among the three companies shortlisted for setting up automated vending machines at 105 locations selected by the Eastern Railways.
Meanwhile, the company has reported a 39.1 per cent rise in profit for the third quarter this year against the same quarter the previous year. The company has attributed this to higher sales and lower commodity prices.